or the nasty plastic. packages are sold. james indiana says talk about a waste of taxpayer money. how about michelle obama flying all over the country on our dime.

with all the fuel takes plus security we have to provide like shand the president are on permanent vacation. after being retired, recently had to return to the workforce. i don't watch much tv, but attempt to stay informed therefore have concluded "the willis report" is the only reason to watch television. appreciate that. and did you know there is literally an elephant in the room in washington. thanks to uncle sam, taxpayers spending plans of dollars on dumbo and not talking about petty cash. $3.8 million to decrease human elephant conflict. in africa. and don't think you're off the hook this year. an additional way to continue the good fight next year. a huge waste and abuse under wax care dollars. are they clearly nuts.

i suggest they start right here. that is my two cents more. thank you for joining as. we will see you right back here tomorrow. ♪ lou: good evening, everybody. the fbi has announced an investigation into possible chinese espionage carried out within the walls of nasa. a chinese national arrested saturday by u.s. soil with a 01-white plane ticket to china in possession of potentially highly classified military secrets and space technology. nasa contractor was apprehended at dulles airport carrying several data storage devices including hard drives, flash strives to and computers that investigators say contained highly sensitive information.

under investigation tonight for a substantive violation of the arms export control act. congressman frank wolf of virginia chairs the house appropriations subcommittee that is responsible for the funding of nasa. congressman will holding a press conference today to inform the public of the security breach. >> i'm particularly concerned that this information may pertain to the source code for high-technology imaging technology that he had been working on with nasa. this information could have significant applications for the chinese people's liberation army lou: congressman wolf also noted that he is affiliated with the chinese institution that has already been designated a entity of concern by u.s. government agencies and that he has a history of taking potentially damaging information and material back to china. >> we will know the nature of

the information on the hard drives until the fbi fully reviews it, we know that he has in the past taken sensitive of permission back to china. should not have been allowee to remove from langley. lou: believes their nearly to many chinese nationals working in nasa who have access to sensitive military information. joining us here live in just a matter of moments. a first authorities say a civilian defen contractor and the intelligence division of pacific command gave existing warplanes and details of u.s. nuclear weapons to his chinese girlfriend. benjamin bishop, a colonel in the army reserves facing one count of communicating natnal defense information to a person not entitled to receive it. one count of unlawfully retaining national defense

documents. the former vice chairman of the federal reserve joins us to tell us what he thinks, whether it's too soon for the fed to exit bin bernanke's deasy montell -- monetary policies. former dupont to five kristine adam says the aba justice department is motivated by politics and race. he joins us live. a shocking admission from a key defense witness. join us here tonight. first, a victory for gun owners and the second amendment. senate majority leader harry reid today announced that the democratic effort to ban so-called assault weapons will not be included in the majority leader's gun-control bill. senator riegle acknowledged that despite the president's call for gun-control, intense lobbying by the white house, the present, the gun-control groups there is simply not enough support.

almost two decades ago. this time senator feinstein could not win meaningful support . >> right now her amendment usi the most optimistic numbers as less than 30 votes. after is something on the floor so we can have votes on that issue and the other issues that talked-about, and that's going to try to do. lou: senor feinstein will offer her assaults were up to five assault weapons ban legislation by eminent. a lot of questions about chinese espionage against the united states and why it's being tolerated by our national security organizations. my next guest, a hearing on funding for the fbi, as the director about china's intensifying as the in-.

>> it is a significant threat. if anything would say that the threat is more substantial than perhaps a westerner 50 years ago lou: joining us now, the man at the forefront of the best espionage investigation, congressman frank wf member of the house committee on appropriations, chairman of the subcommittee on commerce, justice, and science. thanks for being here. i want to first get a sense of where we are in the investigation. the fbi. how soon do you expect it will be revealing the contents? he tried to leave the kutcher for china. >> he's in prison. he's in jail. they should be within the next couple of days. lou: we listen to fbi director muller talk about how serious the problem has become. i have a strange feeling that if we did not have your voice on this right now there would not

be a discussion of what is happening in nasa. various science centers, our national laboratories, and the full breadth of what ishe chinese spying efforts of all sorts in this country, not just simply cyber spying, but 3500 from companies. this is a major threat ainst this country. >> it is a major threat. every major american company has been hit with a cyber attack. everyone. i have seen the list. the university's, foundations, major law firms. they hit my area. they took everything off of my computer a few years ago. people have been reluctant to speak out about it. what is so shocking and makes me angry, the american taxpayer funded this guy, funded this guy, this chinese buy, he had over $200,000 grant. we were paying for him to spy

against this. there are no americans working in china on any of the people's liberation army, the space program. the peopls liberation army basically runs their space program. there were the ones that opened up to kill all those human rights advocates. there the ones that really have led that genocidal government. this demonstration has to be very aggressive. the attorney neral i think it's bn weak, but the fbi has been very good. d.h. as has been very good. and so i want to congratulate. also i want to say most of this information was brought to a spy career people in nasa. they brought it forth. this is not only at the langley center. also taking place perhaps out of the ames center in california. lou: the west coast facility. the aims nasa facility science center as well. the obama administration

program, literally hundreds of chinese nationals are gaining access to some of our most sensitive and advanced technology and data. >> they are, and some ofhe information given to me as to where he had an office and what was available to them -- and keep in mind he has already taken one laptop, one computer back to china. they already have a lot of the information. much of the game that china has made in space has become from their stealing. much of their economic gain has come from stealing. not only in national security but an issue of jobs. as we create a job, they're taking it out of the bottom of stealing it. they're basically stealing. these are fundamentally people who do not wish america well. lou: in his instance he was a representative of -- well, he is hardly alone in this effort to spite, to carry out an espionage

against the united states. there are other, some estimated 200 chinese nationals who may not have security clearances in and of themselves, not hired by nasa directly, but art frankly here as a result of outsourcing. that is, they have subcontractors that they bring in to work at nasa. this is -- >> you're right. we are going to get to the bottom of it. we have given the nasaa langley people the names of 26 other chinese people, names, dates that were employed and ask them to look at them. tomorrow at 2:00 the administrator, we're going to ask him what he will do about it. the vast and to bring in an outside group, bring in former attorney general thornburgh, do a major investigation, bring in the national academy of public administration to see how the reform it. but they're going to have to reform it. this is a danger to the country. also, they're stealing jobs from

america. the ainistration always talks about if we want to create jobs. see with the unemployment rate is. they're taking our jobs. we will stay with it and press the administrator. what are you going to do about it? lou: well, congressman, you are involved in so many issues of extraordinarily active congressman who is highly effective. congressman, we are delighted that you would take time to be with us here to discuss what is happening. come back soon as you pursue this critically important task. thank you so much. >> thank you. okay. lou: ice director web before the house judiciary committee today. they're to explain his decision to release more than 2200 illegal immigrant detainee's while his department publicly claimed that they did so because of funding shortages created by the sequestered. republican congressman today

firmly asserted that the obama administration and director martin have been playing politics with a sequestered, and in this exchange, the congressman obviously did not by his claims, and he made it clear why not. ♪ >> it appears to me that the release of detainees was part of a sequester campaign that included the fictional firing of teachers, the closing of the white house for student doors, the displacement of meat inspectors, and now we will releasaggravated felons, some aggravated felons on to the street. i have counted six times you have said you did not want to go rob peter to pay paul. i don't want peter or paul to rob one of our fellow citizens because you guessed wrong on who to release. so of -- what is a level one violator? and level one offender --

>> first i disagree with your characterization about these being -- >> that's fine. you can use your time to disagree with my characterization. don't use mine. what's a little one violator. >> with regard to level one offenders they are aggravated felons. >>ow many were released? >> there are four presently. >> how many were released? >> eight or released. we have for presently. lou: the congressman ao noted the cost of holding this detainee's. $122 per day. he pressed mr. morton on why ice executives did not use other agency money rather than release those dangerous felons just to make a political point. america's military. they have served and sacrificed for us and our government is letting them. you will find the numbers shocking incidents "chalk talk". the obama economy slowly growing as markets pushed higher.

former federal reserve vice chairman and noted princeton economist with us here next. ♪ gotcha ! got you ! you cannot escape the rebel forces ! ahhh. got you ! got ya ! gotcha ! got ya. that's all you got, brother ? take that. never having to surrender the things that matter. gotcha. that's powerful. verizon.

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♪ lou: well, amidst all today, the housing market showing signs of a robust recovery. a former vice chair of the fed and noted economist alan blinder joins us here tonight to tal about the possibilities of a return to prosperity. and on wall street, the dow jones industrials powering through all those zero lorries to close higher. many investors still concerned about the eu bailout and the cyprus rejection of the eu mandated tax on the small depositors. news that the housing sector is

stronger than expected helping to overcome some of the markets and today. the dow up about four points. the s&p fell to the sameumber, the nasdaq down almost nine. big board volume today picking up. gold moving higher, up 670, closing at 161130. crude oil dropping a dollar 58 to 9216 per barrel. the bond market and interest rates falling. the ten year treasury just under 2%. federal reserve policymakers beginning their 2-day meeting. my next guest said the fed will has been substantial, don't expect changes anytime soon. that should be music to the ears of most investors. joing us, former federal reserve vice chair princeton economist alan blinder and the author of the book after the music stops. great to have you with us. >> nice to be here. lou: let's start with cypress. this little place, million folks.

they're creating quite a mess. $400 billion lt of global markets yesterday. we should blame -- >> multiple of the gdp. i actually think of like what is usually the case, the markets are taking this relatively, it. well have imagined real panic runs on banks lou: and the shorts were trying to get us to imagine. >> they always do. that's how they make money. markets tend to go overboard. i don't think they did go overboard. i think their is a real danger. he knows what kind of a precedent this might be. lou: as a precedent i think it's worrisome that of all people the head of a european central bank would apparently sign off on a tax confiscation of small depositors money in cyprus or

any other jurisdiction throughout the european union. that's the kind of precedent that i think is giving a lot of people concerned tonight. >> i would be denying unify said was a surprise. i did know that was going to happen. that really is, if you make a list of what is called public sect involvement, how you grab money from other people saw the government doesn't have to, that's pretty way, way down the list. that something in the united states or in degree case, i don't think anybody ever thought of doing that. lou: has never been such an appropriation in any part of t european bailout. coming back to this country as we watch our friends in europe try to deal with the welcome if you will, the aftermath of a very bad decision. have you feel about our markets? this seemed to be, as i said at the outset, the housing recovery , the markets seem to be holding a. your thoughts.

>> i think ty're taking it in stride. we had a bigun-up,s everybody knows. some people think of all you need when you get something like that to light a match somewhere and it just gives up a lot of its gains. that was a little match. it did not give up much. frankly, you know when i know and everyone knows, or all staring at the federal reserve as if something momentous will come out tomorrow, and it won't. lou: you guarantee it. >> i can guarantee it. lou: after t last time, bernanke had to come on and basically say don't misunderstand is in charge here we said we're going to keep the pedal to the metal, and we will. it will bee ashamed to undo all the good that has been done. i'm in the minority in a lot of places. at the bernanke is done a great job. >> is done a fabulous job. at the lehman brothers was a big mistake. but since then i think they have been sure footed, smart,

creative. they have shown sticko this. lou: sometimes in a very lonely way, not much competition. >> a lot of criticism. lou: it's always great to see you. we appreciated. >> creek to be with you. lou: go to the loudobbs.com and connect directly and make a small transaction. after the music stops. of that title, by the way. >> thank you. lou: we recommend the book highly. coming up next, the war continues later, the fiscal, psychological impact on our military. you are going to hear and see some shocking numbers in the "chalk talk" tonight. in a key defense witness makes a shocking admission under cross-examination. that's next. that's next. stay with us. today is gonna be an important day for us. you ready? we wanna be our brother's keeper. what's number two we wanna do? bring it up to 90 decatherms. how bout ya, joe?

let's go ahead and bring it online. attention on site, attention on site. now starting unit nine. some of the world's cleanest gas turbines are now powering some of america's biggest cities. siemens. answers.

♪

lou: that was the scene of a baghdad ten years ago tonight at the start of the iraqi war. controversial war, certainly. 4,486 of our troops killed. financially it cost just under 2 trillion. that does not count the almost half billion in benefits r our war veterans. there were no commemoration ceremoni in washington or for that matter baghdad today, but we think it's important to know %-a serving the over to a halfo million men and women who serve us in uniform and not. this is, thankfully, i believe, a real shock end of today. the number of our veterans receiving compensation is on the rise. two and a half million in 2003. it to a half million in 2003.

three in half million. listen to this. according to the viejo, the average wait time after filing for a disability or health care plan ten years ago was 155 days. now meet its 273 this. we are talking about our veterans, to hell wll the greatest obligation of citizenship, for those who protect our land and us, our nation. for veterans filing their first claim the wait time is up to 327

days. i didn't want to put that on the board. this is bad enough. in all, some 350,000 claims were pending before the decade -- before the viejo. 350,001 dating of. now 900,000. you probably are stunned by these numbers as we were. what you may be further surprised by how the number of veterans ten years ago there were 26 million veterans in this country, 26 million. now that number has fallen to 21 and a half milli, almost 5 million fewer, the greatest

generation is passing. will we are doing to the generation of veterans who have served us so well and sacrificed so much is not something that we can put your the word great. senate democrats trying to avoid political suicide. the "a-team" tells us why the assault weapons ban never had a chance. these are republicans? the national republican congressional committee taking a breath of the grim with liberal madness. a dramatic turn of events. a defense witness is exposed. details straight ahead in top ko thank you orville and wilbur... ...amelia... neil and buzz: for teaching us that you can't create the future... by clinging to the past. and d with that:

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♪ lou: well, we want to tell you about the bible.

the miniseries and the history channe it is the number one sunday night. it is the number one show on television. not this year or less your. according to nielsen almost 11 million viewers tune in this bassinet a watch the third episode in a serieshich begins to explore the new testament, introduces the jesus and what is the mainstream liberal -- the mainstream liberal media focused on, obsessed between binding in resemble to the resemblance between the bible's satan character and obama. noting the actor playing cigna has played in many times of war. did i mention that the bible is

the biggest hit ever on cable television? well, a psychologist to as a witness for the defense admits that murder defendant light while he was evaluating her mental state. on trial in a phoenix arizona court for the 2008 murder of her boyfriend. the admission had dr. richard said -- richard samuel struggling to stand by his posttraumatic stress diagnosis. >> what you are telling me is that the validity or this test really is only good if the person who is filling it out. >> that's true. >> so if they're lying to the test is not very good. >> that's fair. >> in this case we do have a circumstance where you know the defendant is lying and she has lied on the test. >> that reflects what we

ultimately discovered. >> so she lied to or ride? >> yes. or her answers may have been consistent with the story she was telling. lou: joining us to sort out what the witness was trying to say, fox is legal analyst and author of the newly released book, a matter of trust. look at this. the tell you. by the way, a new series release i can do this. >> my tent polk. >> congratulations. and i just want to start with a very simple question. heather hansen, criminal defse attorney, joining us. to the light have you back with this. give us, first and your reaction tohat we all just witnessed there on the stand. >> it was bad. martinez crossed him very well. he lost it. he has 30 years of experience

testifying. usually those types of experts are almost impossible to break. he was up there long time and he really did. >> what a simple mistake to make. here is what happened. three stories were told. it was the second story that the doctor klystron, and that was a story of, i was there, but it was two masked men that did the killing. lou: is she going to get the death penalty. >> i don't think so. >> they still have to get to the penalty phase. believe me. a long time. lou: speaking of a lon time, the murder was committed in june of 2008, if you can imagine this she was arrested and behind bars since july of 2008. we're talking about almost five years. meanwhile, jury selection did not begin until december of last year. the trial started in january of this year. we are now in the 301st day of testimony, not to mention her

being on the stand for days. i am stunned that anyone puts up with this. this is barbaric, we are doing. irrespective of anything. five years. >> it's a death penalty case. because it's a death penalty case everything that they do has to be as perfect as it can be because it will be an automatic appeal to the supreme court. in the defendant is the one that has the right to weigh speedy trial. she has been in jail this whole time. if she had been out and about i think that is much more an issue her defense lawyers kept waiting speed trial saying we don't want the prosecution could have been put to charge rent trier within a few months after her arrest. lou: but isn't it absurd of this judicial system to expect those jurors to have to put up with this? is kind of protracted trials? is in the absurd for someone in the judicial system to expect taxpayers to pay for her

confinement, the investigations, the court costs. i mean, this is usually expensive. >> were talking abt a murder case. lou: i know that. let me ask another way. and that no one knew to be insulted, either of you. if youuys weren't working by the hour in the legal profession would this have a different kind of face to? >> prosecutors don't -- >> exactly. >> t defense people are. the prosecutor is not. the situation where it's a death penalty case. they have to give her every last bit of rope. >> and as far as cost, you often don't get paid r this kind of cases. you might rack of these bills but never get paid. lou: to ohio rules, attorney-general mike dewine, the arrest for making threats of the 60 year-old rape victim. this looks like it's going to get very, very broad in its

impact. the attorney general making good on his promise that he's going after anybody who did not report, who had a duty to report but did not. >> good for him. these crows, if it's true what they said, they threatened to kill this car who had just gone through a rate. it just been with -- the two other boys were convicted. they cyber earlier. >> and the same facebook and twitter that was used in this trial. it's really not learning a lesson of the trial. think they had no choice but to pursue a. lou: a lot of attorney general's command a lot to say this, of attorney-general would have found a way in which to avert there eyes from their responsibilities. a just want to commend him and the attorney general for the state of ohio thank you very much. can look with the book. good to have your. if you want to join the discussion please go to up

loudobbs.com to find links to our facebook page. e-mail me. the up next, president obama choosing another radal to join the cabinet. revealing yet another element of his left-wing agenda. other christian adams joins us next. tossing and turning have given way to sleeping. where eepless nights yield to restful sleep, and lunesta eszopiclone cahelp you get there, like it has for so many people before. do not take lunesta if you are allergic to anything in it. when taking lunesta, don't drive or operate machinery until you feel fully awake. walking, eating, driving or engaging in other activities while asleep without remembering it the next day have been reported. lunesta should not be taken together with alcohol. abnormal behaviors may include aggressiveness, agitation, hallucinations or confusion. in depressed patients, worsening of depression,

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♪ lou: president obama's controversial nominee to be a labor secretary under fire after an inspector general's report it is just more revealed deep in ideological polarization within the doj civil-rights unit. my next guest works at the doj before he resigned in 2010 over the department's dismissal of a new black panther party boater intimidation case. joining us now, former u.s to

pardon of justice attorney, author of the book in justice exposing the racial agenda of the obama justice department. good to have you with us. >> good to be her lou: you have to feel vindicated by the doj inspector general's report. let's just share the findings. let me be clear, you have said that peres had provided false testimony. the ig report concludes and are we found the testimony did not reflect the entire story regarding the involvement of political appointees. we did not find press intentionally misled the commission. nevertheless, ven he was testifying as a apartment witness before the commission we belie he should have some more details. your reaction? >> look. this is what we have been saying for years about this civil rights division. itas enormous power over business. call that a rat's nest. invested with racial animu an inspector general report did

not tell the whole story. i testifi also the press said he had never heard of this racial animus. he said that would not have such people in my apartment. factum when you read department inspector general report not only does press think that the voting rights act should not apply to white people, but it's all throughout the department. not just press but his entire division. lou: to that point, the inspector general said press stated that interpreting section five retrogressive affect standards are not covering white citizens, consistent with the division's long standing practice. the division has always understood the term minority to be not numerical minority rather an identifiable and specially disadvantaged group. that sounds like a deep pile of you know what. today we have a diverse country where everyone deserves protection from the voting

rights act. indeed i prosecuted on one occasion where a white minority was discriminated against. peres did not even want to use the voting rights act to help those people in mississippi. a federal court had already found victim's. lou: if he is confirmed as labor secretary. >> it will be the most radical cabinet nominee or cabinet member probably since fdr's agricultural minister. this is a man who is not a big fan of the rule of. he ignores the supre court precedents. businesses should be very, very concerned about this. lou: we thank you for being here. appreciate it. lou: up next in a president a lot worse to convince a skeptical israeli people of his commitment to their nation and their security in his first foreign trip of his second term, his first official visit to israel. the "a-team" takes that up.

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♪ lou: the national republican congressional committee launching their own version of march madness. a promo for the liberal madness brackets. republicans, a sense of humor. enjoy. lou: one of 4q -- groups back from -- back from dealers.

obama mouthpiec bracket. vice-president biden. many staters. the winner, by the way, will receive a basketball -- i don't know. signed by newt gingrich. does that move you? me either. joining us now, the "a-team". american spectator senior editor and fox news contributor. a former senior white house adviser to president clinton, good to see you. >> nic to b back. lou: welcome. let's start with tom press. this is an evil merchant operating in the justice department, said the republicans >> i have not and for a long time. he worked -- he worked for senator kennedy. so i would say that he is in the mainstream of democtic.

lou: how would you know? >> the mainseam of democratic party on civil-rights issues. i worked at the labor department. >> he does not believe the voting rights act should apply in all. in other words it shoul not be colorblind. he was president o the organization of maryland that abdicated and supported zero enforcement of any of our emigration laws. >> it's aery selective -- >> you want to give me more? >> i would say that his views are wholly consistent with the obama administration. rest that i will agree with. >> that i will agree with. >> why are people surprised that barack obama was nominated. this is what happened when a president's get eleed? to have a choice as toho is going to

obtain positions. this is similar to what barack obama stands for. i'm not surprised. >> he was the lawyer for acorn. >> exactly. >> we don't want to read debate these issues. >> both of you where rejected by the voters when the president was reelected. lou: let me come if i may, turn to the republican party which suddenly seemed to be positioning itself to embrace a pathway to citizenship. it's extraordinary. two of the most popular senators are talking about a pathway to citizenship. >> his speech was entirely different. >> let me finish. we will work out the differences. and the party seems to be entertaining, embracing a marriage. what is going on?

>> i thin they want to win elections and that think they're looking at the last two presidential elections and saying these are elections we could have won. they're also looking at things like the youth vote. young people really care about this issue as a civil rights issue. they're looking at things like average and will let knowledge they have made a lot of mistakes in terms of strategy, outrage, proper route reached to the hispanic community, african-american community in this is something you can do without pandering. lou: we have not seen much. it should have gone the other way. this ministration has been fall lawn full throttle. what do you think? were seeing a substantive change in direction and values? >> some republicans have decided that they want to have, shall we say, a more flexible approach and immigration and the marriage, but i will make your bet that we do not have -- we will not have a comprehensive immigration bill passed this year. as for game marriage, that will be determined by the supreme

court. even if the supreme court votes against it, you're still going to have 30 states that have constitutional amendments against it. this will be as low evolutionary process i fadel. lou: if it get much slower it will be three presidential elections. >> i'll be honest with you. but nothing he lost the election. >> policy that would require. >> the republican party. i don't ever hear president obama credit him with the fact.

>> a heavy libertarian influence in the republican party. i think they're realizing that those libertarians have the capacity to whenever independent voters. people more in the center. people who don't want to be affiliated with the party better drawn to issues of freedom and libey. lou: the republican party has got to town to terms -- come to terms with these archaic ideas. they can stitch together religious conservatives, social conservatives, and the peace through strength which means bom, bom, bom. there has got to be some judgment. we have a military command as we just demonstrated, that is absolutely, i mean, they are

exhausted, working for 20 years in circumstances. we have got to get a republican party that shuts up and starts thinking. >> he did think. we want guest worker programs. we want to up not deport people who live here, but at the same time their is a rule of law and we cannot have an automatic. >> we cannot. >> thread the needle. >> it's undeniable that the republican party is starting to wake up andealize that they lost this last election because the hispanics who are in increasingly large number of the voting population doubt that they work -- lou: that is exactly right. the national republican -- >> the immigration issues.

lou: you just want to argue. thank you very much. i have been rehearsing. that's it for us. thank you for being wh the husqvarna all-wheel-drive mower is here. engineered with a unique drive system and dual transmission. all-wheel traction. all-wheel power. all done. only from husqvarna. challenge the impossible.